Why 62, 67 and 70 are the best ages to claim social security



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When Should You Claim Social Security?

This is one of the hardest questions to answer when thinking about retirement. You can start benefits from age 62 or wait until age 70. And there are pros and cons associated with both claiming as early as possible and waiting as long as possible.

To help you decide which age is right for you, three Motley Fool retirement experts explain the best reasons to claim Social Security at three popular ages: 62, 67, and 70.

Old couple reviewing financial paperwork.

Image source: Getty Images.

62 years old

Maurie backman: 62 is the earliest age you can apply for Social Security, and if you go this route, you will dramatically reduce your benefits by signing up to receive them well before retirement age. But despite this reduction, 62 is still a great age to claim benefits.

On the one hand, filing for Social Security at 62 could be your ticket to early retirement. Many people work hard all their lives and save diligently for the future. If you are one of them and can afford the cost of living for seniors based on the money you put into your 401 (k) or IRA alone, claiming benefits at age 62 could help you leave the workforce sooner. And from there, you’ll be more likely to reach your retirement goals.

Let’s face it – the older we get, the more likely we are to experience health or mobility issues. As such, it’s fair to assume that you’ll have more energy to travel, enjoy the nightlife, or engage in leisure activities at 62 than at an older age. Claiming benefits as early as possible is therefore an opportunity to seize if you have saved enough to be able to pay a shot on your monthly payments.

Another thing you should know is that if you are having doubts about your health, applying for Social Security early could leave you with more money in your life. While it is true that claiming benefits at 62 will leave you with less money on a monthly basis, if you die at a relatively young age, you could get a higher payment on a monthly basis. lifetime based.

Of course, if you haven’t saved much for retirement and have no reason to believe that you won’t live long, you might want to choose a later age to apply for benefits. But if you’ve earned the right to start your retirement earlier, or have questions about your long-term health, then 62 may be the perfect age to start receiving the Social Security benefits you’re entitled to.

67 years old

Katie Brockman: Claiming benefits at age 67 is a good intermediate solution if you are unsure whether you want to claim early or deferred Social Security benefits.

The age of 67 is the full retirement age (FRA) for anyone born in 1960 or later. By making a request to your FRA, you will receive the full amount of the benefit that you are entitled to receive. In other words, while you will not receive the bonus amount that you would earn by deferring benefits, your monthly payments will not be reduced either.

To see how much you are entitled to receive in benefits, you can check your statements online with a mySocialSecurity account. Your statements will include an estimate of your benefit amount based on your actual earnings throughout your career. Keep in mind that this number assumes you will be claiming your FRA, so if you claim before or after this age, you will need to factor in your benefit amount adjustments.

Applying for benefits at 67 can be a smart move for someone who wants to earn more from Social Security but doesn’t want to work too long. While you don’t necessarily need to claim benefits and retire at the same time, many people continue to work until they are ready to claim Social Security.

Waiting until age 70 to retire and claim benefits may not be feasible for many workers, especially if you are struggling with health issues or want a good retirement start. However, claiming at age 62 means you will receive much smaller checks each month, which can be problematic if money is tight in retirement. The age of 67 is a wise compromise for many retirees, as your benefits will not be reduced, but you can still retire relatively early.

70 years

Christy Bieber: Not everyone can wait until age 70 to receive social security benefits. But if you are able to make this plan work, waiting until 70 is often the best bet. This is true both because you will have more money each month when you end up claiming benefits and because you will maximize the chances of getting the most benefits in life.

You see, you can earn deferred retirement credits for each month that you wait to start receiving benefits after full retirement age, but you can no longer earn credits after age 70, there therefore has no advantage to postpone beyond this date.

These deferred retirement credits increase the amount of your Social Security income by 8% per year for each full year of waiting, which can result in hundreds or even thousands of dollars more in annual income. This extra money could really come in handy later in life if your savings start to run out.

And although you may need to collect your higher benefits for a while before you make up for the missing money by delaying, many people are breaking even. and live long enough to be better off. In fact, research has shown that claiming benefits at age 70 is the optimal financial choice for nearly 60% of retirees.

Of course, asking at age 62 or 67 might end up being the best option if you die before making up for lost benefits – although you can also reduce spousal benefits left to your surviving widow or widow by applying early. But unless you have reason to suspect that you won’t live as long as your life expectancy, odds are that delaying until 70 will end up being the best decision for you.



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